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Karnataka GST Evasion Detection Surges Fivefold to ₹39,577 Crore in FY25

Finance Minister Nirmala Sitharaman told Parliament that nine arrests resulted in more than ₹1,600 crore in voluntary payments following the enforcement drive, with no CGST notices based on UPI transactions.

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Overview

  • Central GST officers in Karnataka uncovered ₹39,577 crore of evasion across 1,254 cases in FY24-25, up from ₹7,202 crore the previous year
  • State GST field offices used UPI transaction data in July to issue thousands of notices to small traders and shopkeepers in Bengaluru
  • Vendor backlash over retrospective digital-footprint audits prompted Karnataka to launch a ‘Know GST’ drive and a dedicated helpline
  • The finance minister’s written Lok Sabha reply distinguished central CGST actions from state notices, emphasizing that UPI records did not trigger any CGST show-cause notices
  • The enforcement push in Karnataka dovetails with the national GST 2.0 agenda, which promotes e-invoicing and the QRMP scheme to strengthen digital compliance